Equity Bank serves as a Small Business Administration lender actively offering the Paycheck Protection Program which provides an immediate source of funding for small businesses affected by Covid-19.
Southeast Kansas Regional President of Equity Bank, David Wright, joined KGGF on Thursday morning and provided the listeners an overview of what the Paycheck Protection Program is.
PPP loans are funded by the SBA and underwritten by Equity Bank, for the lesser amount of 2.5 times monthly payroll costs or up to $10 million.
Those that are eligible for this program are small businesses and non-profits with less than 500 employees and/or sole proprietors, independent contractors and other self-employed individuals.
Wright says its been busy the last week in trying to get all of the applications processed.
According to Wright, they have done 520 applications and $310 million have been loaned including nearly $5 million of that in southeast Kansas.
The way it works is that you apply through Equity Bank and the lender will require payroll tax reports, evidence of health premiums, and documentation of retirement plan funding. Equity Bank will finalize the loan and SBA application and transmit it directly to SBA.
Wright says its a simple process that can be done on their website.
According to Wright, the average amount of time it takes for the application to be processed and the money to be given out to the business is around 48 hours once all the correct documentation has been filed with the bank.
The Paycheck Protection Program loans can be used for payroll costs which is salary and wages, commission or tips. Mortgage interest and obligations incurred before Feb. 15th. Also rent lease agreements in force before Feb. 15th as well as utilities and service which began before Feb. 15th.
The loan terms include a 1.00% fixed interest rate with up to a two-year term and payments deferred for six months. The loan may be forgiven by the SBA, which means your business may bet to keep the money as long as you use it to keep paying employees or other qualified expenses.
Wright says the lobby is closed but can be utilized if you would like to set up an appointment.
Equity Bank has 53 locations in the four states area with four locations in southeast Kansas: Coffeyville, Independence, Neodesha and Pittsburg.
For more information and what's required, go to www.equitybank.com/SBA.
To start the application with Equity Bank, go to www.equitybank.com/ppp.
You can contact David Wright with Equity Bank if you have any questions in southeast Kansas at 620-331-1660 or by email at dwright@equitybank.com.
